diff --git a/src/poetry/repositories/installed_repository.py b/src/poetry/repositories/installed_repository.py
index 856b472c339..29a276a12b0 100644
--- a/src/poetry/repositories/installed_repository.py
+++ b/src/poetry/repositories/installed_repository.py
@@ -141,7 +141,10 @@ def create_package_from_distribution(
                         # TODO: handle multiple source directories?
                         if is_editable_package:
                             source_type = "directory"
-                            source_url = paths.pop().as_posix()
+                            path = paths.pop()
+                            if path.name == "src":
+                                path = path.parent
+                            source_url = path.as_posix()
         elif cls.is_vcs_package(path, env):
             (
                 source_type,
diff --git a/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir-2.3.4.dist-info/METADATA b/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir-2.3.4.dist-info/METADATA
new file mode 100644
index 00000000000..93113ecebfd
--- /dev/null
+++ b/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir-2.3.4.dist-info/METADATA
@@ -0,0 +1,22 @@
+Metadata-Version: 2.1
+Name: editable-src-dir
+Version: 2.3.4
+Summary: Editable description.
+License: MIT
+Keywords: cli,commands
+Author: Foo Bar
+Author-email: foo@bar.com
+Requires-Python: >=2.7, !=3.0.*, !=3.1.*, !=3.2.*, !=3.3.*
+Classifier: License :: OSI Approved :: MIT License
+Classifier: Programming Language :: Python :: 2
+Classifier: Programming Language :: Python :: 2.7
+Classifier: Programming Language :: Python :: 3
+Classifier: Programming Language :: Python :: 3.4
+Classifier: Programming Language :: Python :: 3.5
+Classifier: Programming Language :: Python :: 3.6
+Classifier: Programming Language :: Python :: 3.7
+Classifier: Programming Language :: Python :: 3.8
+Description-Content-Type: text/x-rst
+
+Editable
+####
diff --git a/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir.pth b/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir.pth
new file mode 100644
index 00000000000..c40b340604b
--- /dev/null
+++ b/tests/repositories/fixtures/installed/lib/python3.7/site-packages/editable-src-dir.pth
@@ -0,0 +1 @@
+/path/to/editable/src
diff --git a/tests/repositories/test_installed_repository.py b/tests/repositories/test_installed_repository.py
index d5f5bf689da..5cb66854da8 100644
--- a/tests/repositories/test_installed_repository.py
+++ b/tests/repositories/test_installed_repository.py
@@ -69,6 +69,7 @@ def installed_results(
         ),
         metadata.PathDistribution(site_purelib / "standard-1.2.3.dist-info"),
         metadata.PathDistribution(site_purelib / "editable-2.3.4.dist-info"),
+        metadata.PathDistribution(site_purelib / "editable-src-dir-2.3.4.dist-info"),
         metadata.PathDistribution(
             site_purelib / "editable-with-import-2.3.4.dist-info"
         ),
@@ -286,6 +287,18 @@ def test_load_editable_package(
     assert editable.source_url == editable_source_directory_path
 
 
+def test_load_editable_src_dir_package(
+    repository: InstalledRepository, editable_source_directory_path: str
+) -> None:
+    # test editable package with src layout with text .pth file
+    editable = get_package_from_repository("editable-src-dir", repository)
+    assert editable is not None
+    assert editable.name == "editable-src-dir"
+    assert editable.version.text == "2.3.4"
+    assert editable.source_type == "directory"
+    assert editable.source_url == editable_source_directory_path
+
+
 def test_load_editable_with_import_package(repository: InstalledRepository) -> None:
     # test editable package with executable .pth file
     editable = get_package_from_repository("editable-with-import", repository)